How much can you save with a heat pump?

Saving with a heat pump

Heat pumps are a carbon friendly solution to heating your home, dramatically reducing your overall emissions and providing reliable and lasting warmth throughout the colder months. But how do heat pump costs compare to those of running a boiler, and how much is it possible to save? Here, we explore how you save with an air source heat pump.

Heat pump installation costs

The cost of installing an air source heat pump depends on the size of your home and your heating and hot water demands. The amount of extra work required – such as the fitting of new radiators, new pipework and better insulation – will also impact the overall cost. Many homes require some of this extra work, particularly older properties.

According to British Gas, the average price for a heat pump installation in 2023 was £13,190. However, thanks to air source heat pump grants like the government’s Boiler Upgrade Scheme (BUS), which awards £7,500 to households switching from a boiler to a heat pump, a typical household will pay less than half that, with bills coming in at around £5,690. For homes that are heat-pump ready, with good insulation and the necessary pipework, the cost can be much lower.

Heat pump running costs

In December 2024, electricity is almost four times as expensive as gas, and since heat pumps are run on electricity, many homeowners worry that this will increase their bills rather than lowering them. However, many energy companies are now offering specialist tariffs that reward customers for choosing a low carbon heat source. Octopus, for example, provides a ‘Cosy Tariff’ that reduces the price of electricity for heat pump users, enabling them to save up to £213 per year.

In addition, homeowners who are able to use only their heat pump for heating (as opposed to a combination of their heat pump and boiler) can discontinue their gas supply. This would save a further £116 on the annual standing charge for gas, taking total annual savings to £329.

Heat pump installation

In order to benefit from maximum efficiency, it’s vital to use qualified air source heat pump installers to complete the job. Those certified by MCS are trained to a specific standard, ensuring your appliance is fitted properly and safely, delivering optimal efficiency. They will also assist with annual maintenance and repairs to keep your heat pump running smoothly throughout its lifetime.

At Aura Heating, our heating engineers in Hampshire, Sussex, Surrey, Berkshire and Greater London are fully trained to install air source heat pumps at residential properties. Our MCS certified installers will visit your home to assess your requirements and determine whether any extra work is required. We’ll then provide a transparent quote, help you apply for grant funding and carry out your installation to the highest standards. Contact us today to learn more.